Inventory management anchors the link between organizations and their primary stakeholders. A personal experience at a Credit Union in two weeks revealed just how much the organization undergoes to come up with outstanding inventory blueprints. Branch to branch interconnectivity, integration of the value chain and cost analyses are some of the activities notable in the blueprint. This summery analyzes the Credit Union’s inventory blueprint through a spectrum of seven key points discussed as:
Roles of the Management
The Credit Union considers the role played by management in its endeavors at the center of the success of the organization. Superficially, it is the role of the management to organize and coordinate the operational linkages between different branches (Toomey 123). At all times, the organization’s concern is to ensure delivery of goods and services of similar quality. To achieve such a fete, the Credit Union has employed quality management practices within its structure. Processes, resources, aspirations and documented information are some of the aspects of quality management that the credit union put into its success indicator matrix. An out and out application of the quality management system is evident in the periodic review of the documents. The operations of the entire union are then focused upon the targets met and the gaps that need to be fulfilled. In the inventory, aspects of performance management such as target setting and target analyses are conspicuously evident.
Policies and Procedures
Standardization is a critical success factor to credit unions. With the organization’s major focus embodied on profitability that ensures sustainability, every component of the inventory management has to be complimented with written procedures and standardization (Muller 71). Some of the procedures detailed in the inventory include per unit production indices, time frames for processes and resource allocation procedures. Partly, policies and procedures assist the organization into smoothing complimentary operational strategies such as differentiation and cost leadership in inventory management. As a driver who constantly moved from one branch to the other in the union, uniformity in customer relations was a clear show of standardized operations. Inspections, validations, stakeholder analyses, standardization in movement of services or goods, agreement notifications among others constituted thresholds for policies and procedures. The policies and procedures at the credit union underwent continuous evaluation with new additions put in place in case of failures (Toomey 109).
Purchasing
For an organization that operates in a highly competitive environment and that which faces the competition of potential entries, it is necessary to put in place sound strategies for carrying out purchases (Toomey 111). In the designed purchase strategies, customer satisfaction is put at the center of the allocations. With resource limitations in place, the organization aims at reaching high heights through effective, efficient and complete utility of resources. Development of performance gaps to effect the course are thus a necessity to the entire process. Maintenance of good working relationships with providers are taken care of through procedural situational analysis of who the organization’s stakeholders are, their needs and how the organization plans to meet those needs.
Final purchasing procedures take criteria. Thus, after analysis of the stakeholder, the organization looks into the quality of products and services that match the relationship between the union and the stakeholders. Pricing, brand names and suitability of the purchases are looked into in the ensuing product or service analyses. In some occasions, the procedure may not avail the organization with quality of information about a stakeholder or their products, alliances with competitors are considered to outsource more information. For long term relationship with a particular stakeholder, after-purchase evaluations are normally taken into considerations by the union.
Implementation of Inventory Management Programs
Implementation of inventory management programs in credit union is a sophisticated process. Part of the sophistication is anchored on the fact that the organization operates in a range of portfolios. Sophisticated implementations are necessary for open ends in contingency implementations (Toomey 19). During the implementation process, factors such as suitability of the program, weaknesses or strengths of the program as well as desirable contingency plans are developed. The implementation plan is as well complimented with a sound avenue for monitoring and evaluation.
The subject credit union employs a strategic plan that consists of three primary components. The objectives are the first component of the implementation plan that focuses on how effective the raw materials, stakeholders and assets may steer the organization into meeting its long term strategies. Targets and action plans follow objectives in the union’s implementation plan. Complimentary aspects of the plan detail policies and operational values of the organization. Notably, the entirety of the organization is broiled in the implementation plan with the management taking the leading role in resource allocation and monitoring. During the implementation plan, the needs of the business organization are established from analyses of the performance gaps within specific periods of time.
Quantification, Forms and Logs
The organization has an objective of ensuring integrated flow of services and products in and out of the organization. Continuous stock taking provides the organization with the necessary information of which products are needed, where and when. Quantification thresholds in the credit union are met through proper feedback system, analyses of operations and the performances of each vital indicators. In an organization with varied product portfolios, it is predictable that a lot of documentation may be needed. Some of the critical documents for the processes in quantification detail log books with detailed financial accounts. The accounts are reflected in all the sections and branches of the organization. supplies of goods are services are marked on particular dates within the inventory. The same applies to delivery of services to particular clients. The effectiveness of the entire inventory program is however reliant on the reliability of stock taking program in place. During stock taking, factors such as quality are put in place to minimize variations. Budgeting plans and monitoring of the performance of the inventory are complimentary to the quantification process.
Receipts and Storage of Supplies
In coming up with a sound inventory program, a needs gap assessment is necessary (Muller 107). The union has prospered in developing a synchronized system that determines the influx or efflux of items within and without the inventory. The documentations detailed in receipts and storage of supplies is aimed at minimizing the quantity of dead stock and work in progress. Document organization in receipt and storage management detail verification of the documents before their reception, validation of the dates, and documentation of exit plans as well as development of records update plans. In the long run, the receipts and storage documents are applied in establishing where the organization needs to make adjustments or identification of the indicators that incline the organization into losses. Other aspects of the inventory such as work in progress, ROA, stock levels among others as well relay the performance of the entire organization.
Works Cited
Muller, Max. Essentials of Inventory Management. New York: AMACOM, 2011. Print
Toomey, John W. Inventory Management: Principles, Concepts and Techniques. Boston, MA: Springer. Internet Resource
